Grant payments and GST

The Ian Potter Foundation

May 23 2019

Recently. the Foundation has become aware that some grant recipients have been treating the grant they receive from The Ian Potter Foundation as a receipt that triggers the payment of GST. If that is the case for your organisation, then we are concerned that 1/11th of the grant received by your organisation has been paid to the ATO in error.

Obviously, not-for-organisations should seek their own tax advice, but the GST Act is explicit on this point. The making of a gift to a non-profit body is not the provision of consideration.

The Ian Potter Foundation regards ALL grant payments as gifts. That being the case, it follows that any grant payment received from The Ian Potter Foundation will not constitute consideration for a taxable supply and GST should not be applicable. If your organisation has a contrary opinion to the above, we require you to advise us.

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